The Minnesota Department of Revenue is looking to encourage any members of the state’s military service members to claim the refundable tax credit created in 2018 before it expires later this year. The tax credit, called the Credit for Military Service in a Combat Zone, will expire on October 15th, 2022 and there are still about 1,400 Minnesotans who have not yet filed their claim. Here is more about the credit and who may qualify:
Who qualifies for the credit?
Service members may qualify if they:
- Were a Minnesota resident during the time of service
- Served in a combat zone or qualified hazardous duty area during 2018
- Received combat pay that is exempt from federal and Minnesota income tax
The IRS has online information about combat zone locations approved for tax benefits here. The credit is $120 per month or partial month served. Note: Kuwait is considered a combat zone for this credit.
How do service members claim the credit?
They may either:
- Use our free online system to file electronically here
- Complete and send 2018 Form M99 to file by mail
When filing, be sure to include these required documents:
- Active-duty members
- Attach a Leave and Earnings Statement for each month of qualifying service.
- National Guard member, reservist, or retired or discharged active-duty member
- Attach a Form DD-214 for each period of qualifying service.
Is the credit available for other years?
Service members may claim this credit for tax years 2019, 2020, and 2021 if they qualify. File Form M99 for the appropriate year and include the required documents.
Visit the Minnesota Department of Revenue site here to learn more about the Credit for Military Service in a Combat Zone and other Minnesota tax benefits for military members.